The long term goal of this proposal is to define the role of insulin like growth factor binding protein-2 (IGFBP-2) in skeletal acquisition and maintenance, and to determine the mechanisms whereby this molecule acts synergistically with IGF-I to regulate bone remodeling. The IGF regulatory system in bone includes a family of highly conserved IGF binding proteins (IGFBPs), proteases, receptors and the IGFs. IGFBP-2 is highly expressed in osteoblasts, and it stimulates mesenchymal stromal cell (MSC) proliferation. Global Igfbp2-/- mice have low bone turnover, impaired osteoblast and osteoclast differentiation, and accelerated marrow adipogenesis. To determine the mechanism of action of IGFBP-2 independent of IGF-I, we synthesized a short 13 amino acid peptide that does not bind IGFs but contains a unique heparin binding domain within IGFBP-2 (i.e. HBD1), and showed that HBD1 stimulated OB differentiation as did intact IGFBP-2. Daily administration of a pegylated form of the HBD1 peptide to Igfbp2 -/- mice for 3 weeks rescued their low trabecular bone mass, increased OB number, and enhanced hematopoietic progenitor cells. Osteoblasts from Igfbp2-/- mice have increased PTEN (phosphatase and tensin homolog) transcripts which can be suppressed by addition of exogenous IGFBP-2, IGF-I or HBD. Phosphorylation of AKT in MSCs from Igfbp2-/- mice was greatest when IGF-I + IGFBP-2 were added. Taken together, we hypothesize that IGFBP-2, which is induced by IGF-I, stimulates MSCs and OBs through HBD1. Furthermore we postulate that IGF-I and IGFBP-2 normally act in a complementary manner to promote bone remodeling by acting synergistically through distinct cell surface receptors. The two specific aims proposed are: 1) to determine IGFBP-2 actions on bone remodeling and its role in lineage allocation of MSCs, HSCs, and osteoclast precursors. 2) To delineate the molecular mechanism(s) of IGFBP-2 actions on bone cells, and determine if HBD1 is sufficient to mediate these effects through the pleiotrophin receptor. Using the HBD1 peptide we will study how IGFBP-2 affects the intracellular signaling pathways that promote cell proliferation. These interdisciplinary studies will lead to a clearer understanding of the function of IGFBP-2 in the adult skeleton.